Inbound Logistics | January 2024

The aerospace industry should keep an eye on five sustainability trends, according to Bryan Christiansen, founder and CEO of Limble CMMS. #1: Advanced aircraft design. Aircraft manufacturers can improve performance by making slight improvements to aircraft. They can enhance engine designs for improved fuel e ciency, improve aerodynamic designs, explore the use of lightweight fabrication material, and use advanced coatings. #2: Use of sustainable aviation fuels. The utilization of sustainable air fuels (SAFs) is taking shape as airlines strive to achieve net-zero emissions. These fuels have similar chemical characteristics to fossil fuels but with fewer ozone depletion capabilities; they release carbon that has already been extracted from the environment. Emissions from SAFs have a shorter life cycle, which further reduces their ozone depletion rates. #3: Urban air mobility. Two technologies—electric vertical takeoŠ and landing (eVTOL) aircraft and drone deliveries—are front runners in the urban air mobility sector. Although at an infancy stage, eVTOLs promise to revolutionize air travel for short and medium-distance flights. Companies are using drones for last-mile deliveries across cities, with their payload capacities increasing over time. #4: Advanced propulsion technology. Modern and future aircraft will not rely only on fossil-powered engines. The push for sustainable flights is revolutionizing the design of aircraft and spacecraft propulsion systems. #5: Optimize air travel management. Airlines can minimize their carbon footprints by digitizing air travel management and leveraging advanced technology to improve route planning and asset maintenance and enhance operational e ciency. 5 SUSTAINABILITY TRENDS DRIVING CHANGE IN AEROSPACE

COMPLEXITY CLOUDS A&D The aerospace & defense (A&D) industry is facing unique challenges created by geopolitical conflicts, sustainability regulation and expectations, and shifting demand, finds Deloitte’s 2024 A&D Outlook report. Key takeaways for supply chains include: The A&D supply chain remains complex. The A&D supply chain is a complex, globalized ecosystem of customers and original equipment manufacturers; multiple tiers of suppliers; and maintenance, repair, and overhaul providers. This complexity makes implementing diversification and transparency across the value chain extremely di†cult, but imperative. By maintaining strategic raw material reserves, committing to bulk buying of long lead time items, exploring alternate sources of supply, and digitizing operations, A&D companies may position themselves well to handle any continued fragility across the entire supply chain. Digital transformation will make a dierence. Digital transformation in the A&D industry is largely impacted by regulations, priorities, and resources— but those who are prepared to adopt digitalization and advanced technologies such as Generative AI could gain a competitive advantage. Sustainability matters. The industry faces evolving consumer demands for enhanced technology, greater sustainability, reduced emissions, higher performance systems, and lower costs, which may all factor into decision-making on supply chain processes.

Aerospace Market Size 2022 to 2032 (USD Billion)

$678.17

680 612 544 476 408 340 272 204 136 68 0

$626.77

$579.81

$536.86

$497.55

$461.55

$428.55

$398.28

$370.50

$344.97

$321.5

2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

Source: Precedence Research

26 Inbound Logistics • January 2024

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